Nigerian scammer 'pulls off $1m heist' from prison

 A convicted internet fraudster has been placed under investigation in Nigeria for allegedly masterminding a "mega scam" from a maximum-security prison worth at least $1m (£773,000).

Anti-corruption officials said Hope Olusegun Aroke used a "network of accomplices" for the fraud.

He was arrested in 2012 and has been serving a 24-year sentence at the Kirikiri Maximum Security Prison.

But a preliminary investigation found he still had access to the internet.

In a statement on Tuesday, Nigeria's Economic and Financial Crimes Commission (EFCC) said it had received intelligence about Aroke's scam and was faced with the "riddle" of how he was able to "continue to ply his ignoble trade" from inside the Lagos prison.

Following his arrest in 2012, the EFCC said the then Malaysia-based student was the "arrow head of an intricate web of internet fraud schemes that traverse two continents".

The EFCC this week said its preliminary investigation had revealed that, "against standard practice", Aroke had been given access to the internet and his phone. He had also been admitted to the Nigeria Police Hospital in Lagos for an "undisclosed ailment" and had been able to leave the facility to stay in hotels, meet with his wife and children, and attend social functions.

He had used the fictitious name Akinwunmi Sorinmade to open two bank accounts and bought a luxury car and homes during his time in prison, the EFCC added. He had also been "in possession of his wife's bank account token in prison, which he used to freely transfer funds."

Anti-corruption officials are investigating why he was admitted to hospital and how he was able to travel to hotels and other places.

The Kirikiri Maximum Security Prison is managed by the Nigerian Correctional Service, which has not yet commented on the case.

Case prompts suspicion over corrupt officials

By Nduka Orjinmo, BBC News, Lagos

This is a case that has shocked many Nigerians: how a convict serving time at the country's foremost maximum security prison was allegedly able to operate freely.

Many believe that Aroke could have pulled off his alleged exploits only with the help of corrupt prison officials.

Illicit proceeds make internet fraudsters in Nigeria wealthy and they could easily bribe vulnerable prison officials who are poorly paid.

So far, no-one has been suspended even though it is a major breach of security.

The anti-corruption agency, which put Aroke behind bars, has called it a "riddle" and has promised a thorough investigation.

It is not clear if the agency has managed to change his prison guards, as it is outside its jurisdiction.

And the other question many Nigerians are asking is: Of the many wealthy prisoners - politicians and internet fraudsters - in jail, who else has "bribed" his way out, enjoying a lifestyle fit for royalty?

BBC

Food prices push Nigeria inflation to 17-month high due to border closures

Higher food prices pushed up annual inflation in Nigeria last month after borders with neighboring countries were closed in a crackdown on smuggling.

Nigeria closed parts of its borders in August to fight smuggling of rice and other goods. The head of customs confirmed last month that all trade in goods via land borders had been halted indefinitely.

Annual inflation was 11.61% in October, up from 11.24% in September, the National Bureau of Statistics said on Monday — the highest rate since May 2018. Consumer inflation had dropped to it lowest in almost four years in August.

A separate food price index showed inflation at 14.09% in October, compared with 13.51% a month earlier.

“This rise in the food index was caused by increases in prices of meat, oils and fats, bread and cereals, potatoes, ham and other tubers, fish and vegetables,” the statistics office said in its report.

“The rise in food inflation does suggest that border closures may have played a part in temporarily pressuring prices higher,” said Razia Khan, chief economist for Africa and the Middle East at Standard Chartered.

Shoppers at a market in the capital, Abuja, told Reuters the price of many food items, particularly rice, had risen in the last few weeks.

“Food items are very expensive in the market. When you go to a store they will tell you that is because the border is closed,” said housewife Naomi Nguher, who said she was given this reason for high rice prices at four different shops.

Sherifat Ajala, a rice wholesaler in the commercial capital Lagos, said Nigeria’s bad roads were delaying the transportation of the grain, further preventing the supply from meeting high demand.

“Trucks will spend almost two or three weeks on the road before they bring the rice,” he said.

Last week the West African country, along with neighboring Benin and Niger, agreed to set up a joint border patrol force to tackle smuggling between the nations after a meeting between their foreign ministers.

The central bank is due to set its benchmark interest rate next Tuesday. The bank, which has targeted single-digit inflation, held its main interest rate at 13.5% at its last meeting, in September.

“Given the increase in inflation, we now expect that policymakers will leave their key rate on hold,” John Ashbourne, senior emerging markets economist at London-based Capital Economics, said in a note on Monday.

Reuters

Lion removed from house near school in Lagos, Nigeria

A lion which was reportedly being used to guard a house in Lagos, Nigeria, has been removed by authorities.

The two-year-old lion was reportedly discovered at a property opposite a school by a task force team on Friday.

It was tranquilised on Monday and transferred to Bogije Omu zoo in Lekki, head of the task force team Yinka Egbeyemi told the BBC.

The owner of the animal has been told to report himself to police before the end of Monday or face arrest.

A team from the Lagos State Environmental Sanitation and Special Offences Unit located the animal after residents filed a petition to the state's ministry of environment.

A crèche and elementary school stand opposite the house, according to the BBC's Damilola Oduolowu in Lagos.

The school's management said it had been conscious of the children's safety.

It is thought the lion was brought into the building two months ago.

BBC

Startups in Nigeria are beating the odds to succeed

Entrepreneurs in Nigeria have an oft-repeated saying that is borrowed from New York: “If you can make it here, you can make it anywhere.”

The phrase captures the daily challenges that come with running a business in Africa’s largest economy. And since tech startups exist within the ecosystem, they face their share of difficulties too. A new survey of Nigerian tech firms offers a glimpse into the tough realities of running a tech startup in the country.

The survey was conducted by two Washington-headquartered organizations—ONE Campaign, an international non-profit seeking to fight extreme poverty, especially in Africa, and the Washington think tank Center for Global Development.

More than half the respondents identified the lack of a reliable electricity supply as a severe constraint. A majority of the startups reported 30 or more power outages every month. It’s likely that many startups keep the lights on by investing in generators that cost a lot to run.

That’s money the startups could have put to other uses, as 60% of them reported access to credit as a major obstacle. Nigeria annually features among the top destinations in Africa for startup investment, but much of the funding goes to established ventures with high-profile or foreign-trained founders. For many others, the reality is much more stark given local banks’ reluctance to provide loans to startups, and the high interest rates they charge when they do.

Meanwhile, wealthy Nigerians who might fund home-grown startups still seem reluctant to do so. Entrepreneurs also reported the following obstacles: Political instability, corruption, multiple government taxes and levies. And then there are stories of harassment by the police.

For its part, the Nigerian government points to its improved rank on the World Bank’s Doing Business 2019 report—it went from 146 last year to 131—as proof of its efforts to improve the business climate. But, as the World Bank’s report measures progress more by changes to policy rather than its implementation, it could be argued that it’s getting easier to do business in Nigeria only on paper.

But the workarounds to some of the problems that plague Nigeria’s business environment may come from the tech ecosystem itself. From off-grid energy companies trying to drive up electrification, to fintech ventures looking to boost financial inclusion and access to credit—startups are struggling against the odds. And sometimes beating them too.

By Yomi Kazeem

Quartz

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